Page 88 - Economic report 2020

In parallel with the very dynamic activity, employment rose 5.4%, to 3,919 employees, the
highest figure since 2010. The number of business establishments in the construction sector also
increased, from 931 in 2021 to 954 in 2022. The good moment that the sector is experiencing,
difficulties finding workers and rising inflation have resulted in an increase in average wages of
7.5%, reaching €2,388 per month. This figure exceeds the total average wage, after eleven years
below the average. For its part, reactivation of the sector brought a notable rise in imports of
building materials, for the second consecutive year - including traditional building products and
also products made from ceramic, glass, iron and steel, copper, nickel, aluminium, lead, zinc, tin
and other commodities – of 37%, although part of this growth can be explained by rising prices
and supply bottlenecks.

In 2022, the surface area of approved projects grew strongly (+48.2%), to 813,078 m , reaching
2
the highest figure in the last nineteen years. The data shows that the sector is experiencing an
extraordinarily positive period of activity and investor confidence.

The increase in approved surface area in 2022 The surface area of approved building
can be explained by the strong momentum works grew 48.2%, reaching one of the
in new builds. In fact, 83% of the approved
surface area relates to new builds, increasing highest values in the historical series,
by 77% since 2021. In contrast, 15% relates driven by new builds.

Box 11.1
LAW 32/2022, OF 14 SEPTEMBER, TO PROMOTE SUSTAINABILITY
IN URBAN DEVELOPMENT AND TOURISM
86
As indicated in the preamble, in recent years, urban Until the Comú studies are prepared and approved,
development in Andorra has seen an inordinate new build permits are subject to obtaining a
Andorran economy: developments in the main sectors | XI. Construction and related industries
increase in real estate development. This could have favourable report from the ministries responsible for
a negative impact on the targets for sustainable, town planning and environment, except single-family
balanced growth set out in the national agenda, and rental housing.
generating particular concern about the pressure it
puts on natural resources, services and infrastructures As for tourist accommodation, a temporary two-year
needed to guarantee the living standards of its citizens. suspension on authorising new permits for apartments
In addition, the current energy crisis represents a and studios used for tourism has been established, with
substantial challenge to this country’s resilience, some exceptions such as five-star accommodation.
considering the particular fragility of small states. Over these two years, the Government must prepare
a study of the national tourism capacity to allow it to
In response to this situation, the new Law establishes define what measures are required to guarantee the
that within one year after it enters into force, the Comú sustainability and quality of the tourism sector.
governments must prepare a study of the maximum
load capacity of their parishes and must adapt their Moreover, it determines that any change in ownership
land and town planning to the conclusions of the of housing used for tourism through sale results in
reports – which must incorporate the conclusions automatic cancellation of its registration in the Register
from the planning and studies carried out by the of Housing Used for Tourism. Where appropriate, it
Government, especially in relation to the sustainability also means a subsequent requirement to make a new
of resources and the environment – and the capacity application for prior authorisation and registration in
of the national infrastructure and installations. In fact, the said Register, needed to be able to use the housing
the goal is to be able to determine how much growth under this model of tourist accommodation.
each parish can assume in order to define the national
town planning model.